Gabriela Flora and Kristin Dawkins

More and more farmers in the US are deciding not to plant genetically engineered seed for next year's harvest. The American Corn Growers Association (ACGA) predicts a 20-25% reduction in the acreage planted in genetically-engineered crops in 2000.

Farmers are choosing not to plant the modified seed because they can't count on selling their harvests. Consumer objections in Europe and Asia have triggered reactions all the way down the supply chain.

In addition, there is growing concern among US consumers and a growing debate in the US media about the safety of the engineered foods.

In July 1999, Archer-Daniels-Midland (ADM)and AE Staley, the two largest corn processors in the country, announced they would not accept genetically engineered varieties of corn unless they had already been approved in Europe. Later, ADM warned all elevators to segregate their modified crops from the more natural variety, in case consumers rejected the "Frankenfoods."

Producers were particularly shocked when Thai officials rejected a shipment of wheat when they learned it had been genetically engineered.

An additional blow was the publication in July of the Deutsche Banc's report "Ag Biotech: Thanks But No Thanks!" warning investors that "European concerns are very real and not merely a trade barrier." An appendix entitled "Genetically Modified Organisms Are Dead" downgraded Pioneer Hi-Bred stock to "sell" and predicted falling growth rates and valuations for the industry as a whole.

Despite the controversy, some investors are getting rich from genetic engineering. The capital intensive nature of the industry and the drive to control germ plasm have fueled a merger and acquisition mania, such as Monsanto's $1.02 billion purchase of Holden in 1998.

But farmers are in a more difficult position. They have fewer options in terms of what they buy and what they sell, and are often subject to contracts written by the industry that limit their options. If there are problems with the crops, it is usually the farmers who are liable.

Recent reports from Iowa State University and Cornell University have shown that the genetically modified seeds have the potential to disrupt agro-ecosystems. Monarch butterfly larvae die if they feed on the engineered pollen while eating milkweed.

While butterflies are not central farming, the message is clear: other pollinators such as bees, who are necessary to fertilize crops like corn and canola, might also be poisoned by the redesigned crops.

For farmers, the safest course of action might well also be the safest path for consumers.

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